Motion Picture Patents Company - Creation

Creation

The MPPC was preceded by the Edison licensing system, in effect in 1907–1908, on which the MPPC was modeled. Since the 1890s, Thomas Edison owned most of the major American patents relating to motion picture cameras. The Edison Manufacturing Company's patent lawsuits against each of its domestic competitors crippled the American film industry, reducing American production mainly to two companies: Edison and Biograph, which used a different camera design. This left Edison's other rivals with little recourse but to import foreign-made films, mainly French and British.

Since 1902, Edison had also been notifying distributors and exhibitors that if they did not use Edison machines and films exclusively, they would be subject to litigation for supporting filmmaking that infringed Edison's patents. Exhausted by the lawsuits, Edison's competitors — Essanay, Kalem, Pathé Frères, Selig, and Vitagraph — approached him in 1907 to negotiate a licensing agreement, which Lubin was also invited to join. The one notable filmmaker excluded from the licensing agreement was Biograph, which Edison hoped to squeeze out of the market. No further applicants could become licensees. The purpose of the licensing agreement, according to an Edison lawyer, was to "preserve the business of present manufacturers and not to throw the field open to all competitors."